AL & Schneider

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Q19:-

Questions considered while developing Digital Twin :-

1. How to use Data Analytics to offer value added services?


2. How to capture a greater share of a truck’s Total Cost of Ownership (TCO)?
3. How to predict failure & drastically reduce down time?
4. How to put more money in fleet owner’s pocket.

Focus while developing new business model :-

Focus of Ashok Leyland while developing new business model was increase its pie in
the Total Cost of Ownership. It had 7% share while rest goes to other players such as
Insurance Providers, Fuel Companies etc

Ashok Leyland understood very early on that the concept of focusing on 3 C’s (Customer,
Company, Competitor) had to be modified, and it was time to focus on the 5 C’s
(Customer, Company, Competitor, Collaborator, Context).

How will this help Ashok Leyland :-

- It will help them to survive one of the biggest downturn in automobile industry
- Leveraging technology in solving business challenges
- In TCO of 3 Cr, AL captures only 3% currently & this will help then increase the share.

Top 3 challenges of rolling out Digital Transformation

1. Change the overall culture of the company


2. Integrate the company in such a way that all its multiple divisions are connected & there
is high cooperation
3. Change the organization structure to bring in a team of experienced in & focus on
adopting latest technology.
Top 3 benefits of rolling out of the project

1. Competitive edge over competition


2. Survive the downturn in automobile Industry
3. Increase the Total Cost of Ownership of the vehicle

Top 3 major learning from the Ashok Leyland Case for other organizations :-

- Agility :- If we are not agile then we could loose out competitive edge very rapidly;
technology is disrupting businesses.
- Culture :- Digital culture in the organization has to be built. Leaders need to build a
digital appetite in the organization.
- Key Enablers :- Digital road map, Right people, Right tools, Right technology Right
resources.

Synopsis

Mr. Venkatesh Natrajan, SVP of Ashok Leyland(AL) was in a make or break situation with a
downturn in Automobile Industry & had hardly 7% share in Total cost of ownership of the vehicles
sold by them. It then dawned upon him for age of digitalization in AL & their Digital
Transformation.

AL understood that they had to move from 3C’s to 5 C’s which are customer, company,
competitor, collaborator & context. AL explored possibilities of leveraging Artificial Intelligence,
Blockchain, Chatbot & Digital Twin for their digital transformation.

However, they faced major challenges in this journey of transformation wherein the complete
culture of the organization was to be changed & very high level of trust & cooperation was to be
build in the team. Also they had to bring experienced team to focus on latest technology. They
used concepts of ABCD ( AI, Block Chain, Chat Bot & Digital Twin) & created SRM, CRM & Dealer
Management System Tools. Concept of 130000+ connected vehicles & usage of I alert, e diagnostics &
Service Mandi ( Agnostic Platform).

The major advantages AL had was shifting from a product based organization which was on
downturn to a solution based organization & gave them a very high competitive advantage in the
market. Managing the wide network also increased the customer satisfaction level. Study of this
journey can help similar organizations to develop, nurture & prepare their team with key insight
in process & product.

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